BILL NUMBER: AB 1396	CHAPTERED  09/29/00

	CHAPTER   903
	FILED WITH SECRETARY OF STATE   SEPTEMBER 29, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 29, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 31, 2000
	CONFERENCE REPORT NO.   1
	PROPOSED IN CONFERENCE   AUGUST 28, 2000
	AMENDED IN SENATE   FEBRUARY 24, 2000
	AMENDED IN SENATE   SEPTEMBER 8, 1999
	AMENDED IN SENATE   JUNE 23, 1999
	AMENDED IN ASSEMBLY   MAY 6, 1999

INTRODUCED BY   Assembly Members Aroner and Villaraigosa
   (Coauthors:  Assembly Members Lowenthal and Wiggins)

                        FEBRUARY 26, 1999

   An act relating to local government finance, making an
appropriation therefor, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1396, Aroner.  Local government finance.
   Existing property tax law requires the county auditor, in each
fiscal year, to allocate property tax revenue to local jurisdictions
in accordance with specified formulas and procedures, and generally
requires that each jurisdiction be allocated an amount equal to the
total of the amount of revenue allocated to that jurisdiction in the
prior fiscal year, subject to certain modifications, and that
jurisdiction's portion of the annual tax increment, as defined.
Existing property tax law also reduces the amounts of ad valorem
property tax revenue that would otherwise be annually allocated to
the county, cities, and special districts pursuant to these general
allocation requirements by requiring, for purposes of determining
property tax revenue allocations in each county for the 1992-93 and
1993-94 fiscal years, that the amounts of property tax revenue deemed
allocated in the prior fiscal year to the county, cities, and
special districts be reduced in accordance with certain formulas.  It
requires that the revenues not allocated to the county, cities, and
special districts as a result of these reductions be transferred to
the Educational Revenue Augmentation Fund in that county for
allocation to school districts, community college districts, and the
county office of education.
   This bill would, with reference to these allocation and transfer
provisions, appropriate $212,000,000 for local fiscal relief.  The
bill would require $100,000,000 to be allocated to counties, and then
among the local agencies in each county, in accordance with
specified requirements and formulas applied to reduction and transfer
amounts implemented for the 1999-2000 fiscal year.  This bill would,
of the remaining $112,000,000, allocate $10,000,000 among counties
in accordance with population, $100,000,000 among counties and cities
in accordance with population, and $2,000,000 among independent
recreation and park and library special districts on the basis of
reduction and transfer amounts for those districts for the 1999-2000
fiscal year.
  The bill would declare that it is to take effect immediately as an
urgency statute.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  It is the intent of the Legislature that the allocation
made by this act be a one-time appropriation, and that reform of the
state and local fiscal relationship be made to ensure that the
service needs at the local level are met.  It is the further intent
of the Legislature to continue its efforts to reform the relationship
between the state and local agencies, and to continue those efforts
during the next legislative session.
  SEC. 2.  It is the intent of the Legislature to provide local
agencies with financial relief in amounts that are proportionate to
the amounts local agencies contribute to Educational Revenue
Augmentation Funds.
  SEC. 3.  The sum of two hundred twelve million dollars
($212,000,000) is hereby appropriated to the Controller from the
General Fund for allocation among counties, cities, cities and
counties, and special districts during the 2000-01 fiscal year in
accordance with Sections 4 and 5 of this act.
  SEC. 4.  For purposes of allocating one hundred million dollars
($100,000,000) of the moneys appropriated by Section 3 of this act,
all of the following apply:
   (a) A county is prohibited from receiving any portion of the
moneys unless the county complies with all of the following:
   (1) No later than November 1, 2000, the county auditor reports to
the Controller and the Director of Finance the total amount of ad
valorem property tax revenue allocated from the county's Educational
Revenue Augmentation Fund to school districts, community college
districts, and county superintendents of schools for the 1999-2000
fiscal year.
   (2) The county board of supervisors adopts an ordinance or
resolution that specifies each amount of ad valorem property tax
revenue shifted from a local agency within the county to the county's
Educational Revenue Augmentation Fund for the 1999-2000 fiscal year,
and the chairperson of the county board of supervisors reports those
revenue shift amounts to the Controller and the Director of Finance
in a manner that identifies the revenue shift amount for each local
agency in the county.
   (3) The county board of supervisors adopts an ordinance or
resolution pursuant to which the county agrees to both of the
following:
   (A) The county will allocate its share of the appropriated moneys
subject to this section in accordance with subdivision (c).
   (B) The county will not, in connection with either paragraphs (1)
or (2) of this subdivision or subdivision (c), make any claim for
reimbursement of state-mandated local costs.
   No later than December 1, 2000, the county board of supervisors
shall transmit the ordinance or resolution adopted pursuant to this
paragraph to the Director of Finance.  The Controller shall
promulgate guidelines for the making of reports as required by this
subdivision, including listing government entities as named in their
annual financial transactions.  To the extent feasible, counties
shall report the requested information electronically.
   (b) For each county that complies with all of the conditions set
forth in subdivision (a), the Controller shall do both of the
following:
   (1) Perform the following calculations:
   (A) Divide the amount reported by the county auditor in accordance
with paragraph (1) of subdivision (a) by the total of all of the
amounts reported by counties in accordance with paragraph (1) of
subdivision (a).
   (B) Multiply the amount determined in accordance with subparagraph
(A) by one hundred million dollars ($100,000,000).
   For purposes of performing these calculations, the Controller
shall review the information submitted by the county.  If, consistent
with information available from any other reliable source, the
Controller determines that the information may be inaccurate, the
Controller may request the Director of Finance to review the amount
reported by the county in accordance with paragraph (1) of
subdivision (a).  The Director of Finance may direct the Controller
to adjust the amount reported to the Controller by the county in
accordance with paragraph (1) of subdivision (a).  The Controller
shall inform the county of any adjustment that is so made.
   (2) No later than January 1, 2001, the Controller shall, from the
appropriated revenues subject to this section, allocate to the county
the amount determined for that county pursuant to paragraph (1).
   (c) In each county that receives revenue in accordance with
subdivision (b), the county auditor shall allocate that revenue to
those local agencies in the county that contributed a positive amount
to the county's Educational Revenue Augmentation Fund for the
1999-2000 fiscal year.  The allocation share for each recipient local
agency shall be determined pursuant to the following calculations:
   (1) Divide the amount of revenue shifted for the 1999-2000 fiscal
year from the local agency to the county's Educational Revenue
Augmentation Fund by the total amount of revenue shifted for the
1999-2000 fiscal year to the county's Educational Revenue
Augmentation Fund from all local agencies in the county contributing
a positive amount to that fund.
   (2) Multiply the ratio determined pursuant to paragraph (1) by the
amount of revenues allocated to the county pursuant to paragraph (2)
of subdivision (b).
  SEC. 5.  For purposes of allocating one hundred twelve million
dollars ($112,000,000) of the moneys appropriated by Section 3 of
this act, all of the following apply:
   (a) The Department of Finance shall, no later than November 1,
2000, provide to the Controller its estimate, as of July 1, 2000, of
the population of each of the following:
   (1) Each county in the state, with respect to both the entire
county and the unincorporated portion of the county.
   (2) Each city in the state.
   (3) Each city and county in the state.
   (4) The state as a whole.
   (b) The Controller shall, no later than December 1, 2000, allocate
ten million dollars ($10,000,000) among the counties and any city
and county in accordance with each county's or city and county's
proportionate share of the total population of the state.
   (c) The Controller shall, no later than December 1, 2000, allocate
one hundred million dollars ($100,000,000) among the counties and
the cities in the state in accordance with the proportionate share,
of the unincorporated area of each county and of each city, of the
total population of the state.  For purposes of this subdivision, a
city and county is deemed to be a city.
   (d) The Controller shall, no later than January 1, 2001, allocate
two million dollars ($2,000,000) exclusively among those recreation
and park districts formed pursuant to Chapter 4 (commencing with
Section 5780) of Division 5 of the Public Resources Code, for which
the boards of directors are either appointed or elected, as provided
in that chapter; and among those independent library special
districts formed pursuant to Chapter 3 (commencing with Section
18300) of Part 11 of Division 1 of Title 1 of the Education Code or
Chapter 8 (commencing with Section 19400) of Part 11 of Division 1 of
Title 1 of the Education Code or Chapter 9 (commencing with Section
19600) of Part 11 of Division 1 of Title 1 of the Education Code that
contributed a positive amount to the county's Educational Revenue
Augmentation Fund for the 1999-2000 fiscal year.  The allocation
share for each recipient independent recreation and park or library
special district shall be determined pursuant to the following
calculations:
   (1) Divide the amount of revenue shifted for the 1999-2000 fiscal
year from each independent recreation and park or library special
district to an Educational Revenue Augmentation Fund by the total
amount of revenue shifted for the 1999-2000 fiscal year to all
Educational Revenue Augmentation Funds in the state by all
independent recreation and park and library special districts
contributing a positive amount to those funds.
   (2) Multiply each ratio determined pursuant to paragraph (1) by
the amount of revenues allocated to independent recreation and park
and library special districts pursuant to this subdivision.
  SEC. 6.  It is the intent of the Legislature that any dollars not
expended from the Property Tax Administration Loan Program shall be
used to meet the obligation specified in subdivision (b) of Section
5.
  SEC. 7.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to allocate essential funds to local agencies as soon as
possible it is necessary that this act take effect immediately.
